Little Bank and Union Bank merge
By Staff Reports
Published in News on December 4, 2016 1:45 AM
The Little Bank and Union Bank have entered into a definitive agreement to merge and will operate under the Union Bank brand name, with headquarters in Greenville.
The combined bank will have about $665 million in total assets and 15 branches in central and eastern North Carolina, including one in Goldsboro.
"It is rare to find two banks whose culture, business approach and customer bases align as well as the little bank and Union Bank," said Rob Jones, president and chief executive officer of LTLB. "We look forward to working the Union team to continue our common history of exceeding the needs of our commercial and retail customers. By almost doubling our size, we expect to be able to take advantage of efficiencies and offer new products and services for the benefit of our customers, employees and shareholders."
"Union Bank has a proud tradition of serving its local communities and the greater Research Triangle as an independent community bank," said John Burns, president and chief executive officer of Union. "We were not actively considering a partnership until we met Rob and his team at the little bank. We soon realized how much our banks have in common and that together we could continue our respective community bank tradition while capitalizing on the benefits that some with being a larger bank."
Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, Union will merge with LTLB in a stock transaction valued at approximately $30.7 million, or $11.94 per share, based on the closing price of LTLB common stock as of Nov. 14. The transaction is expected to immediately accretive to earnings per share, excluding deal costs.
Jones will serve as president and chief executive officer and Burns will serve as EVP and chief banking officer of the combined bank. Crawford Knott, chairman of Union's board of directors, will become vice chairman of the combined bank's board of directors.
The transaction, which is subject to regulatory approval, the approval of shareholders of LTLB and Union, and other customary conditions, is expected to close in the second quarter of 2017.
More information on the terms of the transaction will be included in an investor presentation to be distributed by the parties and posted on the websites of LTLB and Union.